FRA Practice Questions Set 1

Sum 1: The following figures relate to the business of Bekky, a wholesale merchant, from whose books
they were extracted on 31st December 2012:

Motor vehicles 64,000 Cash in hand 1,000

Profit for the year to date 70,000 Creditors for expenses 3,000
Stock in trade/Inventories 53,000 Creditors for supplies 52,000
Withdrawals 50,000 Accounts Receivable 62,000
Furniture & fixtures 36,000 Bank balance 39,000
Freehold premises 1,50,000 Capital,1st Jan 2012 3,30,000
You are required to prepare the Balance-sheet as on 31st December 2012.

Sum 2: The following is Suraiyas Balance-Sheet as on 31st December 2013:

Liabilities Amount Assets Amount

Creditors/Accounts 28,500 Accounts Receivable 10,800
Payable
Capital 46,350 Inventories 42,000
Furniture 15,000
Cash in hand 450
Cash at bank 6,600
74,850 74,850
Show how the balance-sheet will appear after the following transactions have taken place:

a) Received cash of Rs 1,800 from a customer.

b) Goods sold (cost price Rs 3,000) on credit for Rs 3,900.
c) Purchased goods on credit Rs 2,700.
d) Paid electricity expenses by cash Rs 150.
e) Paid rent by cheque Rs 1,200.
f) Purchased on credit new office fittings Rs 1,200.
g) Paid cheque to the supplier Rs 2,250.

Sum 3: Following are the transactions of Nishad Ltd during the year 2015. Prepare Balance Sheet as on
31/12/2015 and an Income Statement for the year 2015:

1. Started business with cash Rs 20,000.

2. Loan taken from Alka Ltd Rs 2,000.
3. Purchased patents for Rs 2,000 on 1st January 2015. The benefit is going to last for 2 years.
4. Wages paid Rs 3,000.
5. Scanner purchased for Rs. 4,000.
6. Goods sold for cash Rs 3,000.
7. Goods sold on credit to Nishka Ltd for Rs. 5,000.
8. Goods purchased from Mohan Ltd for Rs. 10,000.
9. Cash received from Nishka Ltd, Rs. 3,000.
10. Cash paid to Mohan Ltd Rs. 5,000.
11. Rent paid Rs. 1,000.

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Sum 4: Prepare Balance-Sheet and Income Statement after recording all these transactions:

1. Soha started business with personal cash Rs 1,00,000, inventory of Rs. 20,000 and a loan from
Priya Rs 5,000.
2. Purchased consumables of Rs. 5,000.
3. Purchased goods on cash for Rs 3,000 and on credit from Shiya for Rs 10,000.
4. Furniture purchased for cash of Rs. 10,000.
5. Bought Microwave for personal use for Rs. 4,000 using the cash from business cash box.
6. Wages paid Rs. 500.
7. Rent paid Rs. 700.
8. Goods withdrawn for personal use Rs. 2,000.
9. Goods costing Rs. 5,000 sold for Rs. 7,000 on credit.
10. Cash paid to Shiya Rs. 8,000.
11. Loan paid to Priya Rs 3,000 & consumables costing Rs 3,000 were found to be in stock.

Sum 5: From the following balances, prepare the Income statement and Balance sheet for the year
ending on 30th June, 2014:

Wages(non-productive) 4,000 Returns inward (Sales 7,000

returns)
Rent, rates and taxes 1,01,800 Furniture 30,000
Freight & duty* 10,000 Sundry debtors (A/R) 1,60,000
Carriage inwards* 8,800 Discount received 4,000
Carriage outwards** 2,800 Sundry creditors (A/P) 1,00,000
Salaries 2,25,200 Sales 13,29,400
Cash at bank 10,000 Return outwards 5,600
(Purchases returns)
Drawings 17,400 Purchases 7,44,000
Capital 6,00,000 Plant & machinery 5,40,000
Wages(productive) 51,200 Inventories 95,000
(1st July,2013)
General expenses 31,800
* Incurred on purchase of raw material ** Incurred on sale of finished goods

The following adjustments are necessary:

Inventories on 30th June, 2014 was valued at 1, 12,000.

Depreciate machinery by 10% and furniture by 5%.

Sum 6: Prepare Balance Sheet and Income Statement for the year ending 31st December 2015:

1. Started the business with cash Rs 1, 00,000.

2. Paid salary Rs 5,000.
3. Rent expense remained outstanding Rs 3,000.
4. Interest on loan not received Rs 1,000.
5. Goods purchased for cash Rs 20,000 and for credit Rs 50,000.
6. Television purchased for personal use Rs 2,000.
7. Interest on capital remained unpaid to the proprietor Rs 3,000.

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 8. Salary of Rs 2,000 was yet to be paid.
9. Cash withdrawn for personal use Rs 2,000.
10. Paid advertisement charges of Rs 1,000.
11. Sold goods costing Rs 50,000 for Rs 70,000 on credit.

Sum 7: Using the transactions given below, prepare Income statement and Balance sheet for the year
ending 31st December 2013.

1. Aria started a business on 1st Jan 2013 with cash Rs 90,000, goods of Rs 21,000, machinery of
Rs 40,000 and furniture of Rs 15,000.
2. One-third of the above goods were sold at a profit of 10% on cost and half of the payment is
received in cash.
3. 10% Loan of Rs 30,000 borrowed from bank on 1st Jan 2013. Interest and principal are to be paid
in 3 equal annual installments on 31st Dec every year.
4. Depreciation on machinery is to be provided @ 10%.
5. Cash withdrawn for personal use Rs 2,000.
6. Interest on cash withdrawal charged by business Rs 200.
7. Rent paid Rs 15,000 till 31st March 2014.
8. Goods sold at cost to Emily for Rs 4,000 on 11th Nov 2013, and received a bills receivable for
same amount for 2 months.
9. An electricity expense of Rs 1,000 was paid. However, only Rs 400 was related to this year.